Economic and

Management Sciences
Grade 7

Term 1 - 4

YT Gietl
 ENRICHED VERSION VS CONDENSED VERSION

Alongside the enriched EMS 8 and 9 workbooks, we also have condensed versions.
This table will explain the differences and benefits of each.

ENRICHED EMS WORKBOOKS CONDENSED EMS WORKBOOKS

This version suits schools with 3 or more
lessons allocated to EMS per cycle.
The topics covered will prepare learners
for grade 10.
Include CAPS
This version suits schools with very
limited time i.e. have fewer than 3
lessons per cycle or have allocated
more time to Accounting.
CAPS only

Revision Topics and

Activities * *
Enrichment Topics
and Activities * *
Tear - out Activities 22 23 11 13
Set out in SUBJECTS
namely: Economics,

* *
Financial Literacy
and
Entrepreneurship

* *
Set out Term 1 – 4 in
TOPICS as per CAPS
Price incl. VAT R 160 R 160 R 120 R 120
 ECONOMIC AND MANAGEMENT SCIENCES GRADE 7
TERM 1 - 4
INDEX
LEARNER SUPPORT MATERIAL PAGE ACTIVITY ASSESSMENT PAGE
NUMBER
• Personal Goal Statement 1 -2
• Plot your Progress 3-4
• Continuous Homework Assessment 5-6

TERM 1
1.1 Historical development of money 7-8
1.2 Money - Cash and Credit 9 - 14

1.3 Needs and Wants 15 - 18 • PRESENTATION 1 19 - 20

1.4 Goods and Services 21 - 22 • PROJECT 2 23 - 24

1.5 The role of households as

consumers and producers 25 - 26 • ASSIGNMENT 3 29 - 30
How to use goods
and services efficiently and effectively 27 - 28

1.6 Formal and Informal Businesses 31 - 36 • ASSIGNMENT 4 37 - 38

TERM 2
2.1Accounting concepts
Assets 39 - 41
Liabliliteis 42 - 43
Personal Income and Expenses 44 - 47
Business Income and Expenses 48 - 54
Transactions 55 - 58
Personal Net worth Statement 59 - 60
• CASE STUDY 5 61 - 62

TERM 3
3.1 Definition of an entrepreneur 63 - 64
Business Plan for Entrepreneurs day 65 - 66
Target Market 67 - 68
Production costing 69 - 70 • PROJECT 6 71 - 72
Break even point 73 - 74
Marketing 4 p's 75
Marketing Plan 76
SWOT Analysis 77 - 78 • CASE STUDY 7 79 - 80

• PROJECT 8 81 - 82

Advertising 83 - 84 • PROJECT 9 85 - 86

Government and Apartheid 87 - 88

RDP 89 - 90
Urban and Rural challenges 91 - 92

TERM 4
4.1 Productivity - Inputs vs Outputs 93 - 94 • PROJECT 10 95 - 98
Savings - investment and community 99 - 108
Banking in South Africa
The Reserve Bank and DTI's 109 - 112 11 113 - 114
• RESEARCH
 FORMAL AND INFORMAL BUSINESSES

Watch the YouTube videos linked on page 36

1. Informal Businesses
1.1. Informal businesses are characterised by the following:

 No written contracts of employment

 No medical aid or pension fund
 No unemployment insurance UIF
 No tax contributions
 Labour laws (Rights and Responsibilities) are not
relevant or enforceable
1.2. The growth of informal businesses are because
of a number of reasons including:
 Increased urbanisation of blacks (Migration due to hardships and
poverty)
 Slow pace of economic growth
 Incidence of jobless growth
 Decreased incidence of formal employment
 Costs and regulations involved in starting a formal
business
 Limited education and training opportunities
Almost 70% of people
 Increasing who for
demand start
lowancost
informal
goodsbusiness do so because they are
and services
unemployed and have no alternative source of income.
These businesses are not VAT registered. Businesses only need to register for VAT
if the business turnover exceeds R 1 000 000 turnover per annum. In 2013 more
than 50% had a turnover of R1500 or less in the month and less than 10% of
businesses made net profits of more than R6000.

According to Stats South Africa, in 2013 there were 1, 5 million people running an
informal business, an increase from the 1, 1 million recorded in 2009.
Informal businesses are predominantly run by black Africans, persons aged 35 – 44
years, and those with lower levels of education.

1.3. Examples of the different types of informal businesses

o Personal services - hairdressing,

bookkeeping
o Manufacturing - carpentry, sewing
o Building, arts and crafts -
pottery, bricklaying, beadwork
o Entertainment and transport -
musicians, taxi services

These are also examples of formal businesses.

31
 1.4. Advantages of informal businesses

 Contributes to the South African economy.

 Reduces unemployment and poverty. Entrepreneurs are able to support
themselves.
 Easy to start, with no overheads or rent to pay.
 The entrepreneurs learn skills that they can use in the formal sector later on.

1.5. Disadvantages of informal trading

 Pay no tax and the government loses out on revenue.

 No control. This can lead to illegal or unsafe activities.
 Suffer from a lack of financial support and access to markets,
 competition and consumer demands,
 skills shortages and
 not always sustainable
 Some businesses only grow to a point where they can afford to look after their
families; they don’t expand and create more jobs for others

1.6. Different informal businesses form associations to regulate the specific

industry they are in. Some examples are:

 South African Black Taxi Association (SABTA)

 African Builders Association (ABA)
 National Stokvels Association of South Africa (NASASA)

2. Formal Businesses

The total number of people employed by formal businesses recorded for the period
October 2015 - December 2015, was 8.989-million.

ACTIVITY 1

Give an example of a formal business in each of the industries.

 Wholesale and retail trade e.g. _____________________________________

Makro and Spar

 Repair of motor vehicles/cycles e.g. ______________________________________

 Personal and household goods e.g. ___________________

 Hotels and restaurants industry e.g. _________________________________

 Financial and Insurance e.g. ___________________________________

 Real estate and business services industry e.g. ________________________

 Transport, storage e.g. _________________________________

 Communication industry e.g. ______________________________________

 Electricity and fuel e.g. ___________________________________________

 Construction and mining e.g. _____________________________________

32
 Job losses reported for the same period include construction (10,000 jobs), the
mining industry (6,000 jobs) and the manufacturing industry 31 0000 jobs.

ACTIVITY 2

List 5 advantages and disadvantages of owning a formal business.

ADVANTAGES DISADVANTAGES

Acces to finances due to Financial records Higher overheads

Budgets for marketing Taxes on profits

Access to markets and better prices when
buying bulk Greater risks

Access to contracts and taken more seriously Business has to support more people/ families

Greater profits Have to retrench people when the economy is slow

ACTIVITY 3

List goods/ services that are consumed by the following examples of formal and
informal businesses.

FORMAL BUSINESS INFORMAL BUSINESS

Produce Security Bicycle Repair

Products

CONSUME PRODUCE CONSUME PRODUCE

Internet Security Gaurds Tyres Puncture repairs

Vehicles Cameras Patch Kits Seat Repairs
Labour Fencing Glue, oil Spray paint
Stationery Gaurd Dogs Seats New tyres
Computers Armed Response Padding and Leather Replace peddles
Office Furniture Body Gaurds Springs Gear repairs
Head phones Mace and Batons Handels bars Straighten Frame
Telephones Beams Pump Replace spokes etc.
Electricity Cash in Transit Chains etc.
Insurance etc

33
 ACTIVITY 4

1.1 The formal trader registers his business with the relevant authorities
(depending on the form of ownership) as well as with the SARS (South African
Receiver of Revenue) to whom he pays taxes on each transaction and on his
profit. The expenses of a formal trader are higher than an informal trader
e.g.rent, telephone and water and electricity. SPAR is an example of a formal
trader as they have buyers that scout for the best products at the best prices
from manufacturers and wholesalers (assembling). The goods are then stored
(storage) in large warehouses until SPAR outlets request stock. The process
of getting the goods from the manufacturer to the wholesaler to the trader and
finally to the consumer, is called distribution.

1.2 An informal trader will buy goods in bulk from the market (assembling),
repackage the goods into smaller quantities and sell the goods at a taxi rank
(distribution). If the trader does not sell all his goods he will have to find a
place to store the goods till the next day. (Storage). An informal trader does
not need a lot of money to start his business and he does not register the
business either. The informal trader does not include or charge VAT so the
SARS does not benefit from the businesses transactions or profit. He does
however have to comply with the laws of the city e.g. not allowed to trade on
pavements in front of shops. This law protects the rights of the shop owners
who are paying rent from unfair competition. The sidewalks are not
congested and the amount of litter is reduced.

4.1. Tabulate 5 advantages and disadvantages of the informal business

Advantages of Trading Informally Disadvantages of Trading Informally

Lower overheads - lower prices so more competetive Informal stands are subject to weather conditions
No taxes, all profit belongs to the owner
See pages 32 for more examples

4.2. Tabulate 5 advantages and disadvantages of formal business

Advantages of Trading Formally Disadvantages of Trading Formally

Formal building, more secure, can work from home

See page 33 for more examples

34
ACTIVITY 5

In order for businesses to produce goods and services, they have to make use of, or
consume essential goods and services from other businesses e.g. A trader renting a property
will hire the services of an Estate Agency. The business will make use of an internet service
and telephone provider. The owner will buy shelving for display and storage purposes.

1. Complete the following table and give your own examples formal and informal traders.
Specify the goods or services they produce and the goods and services they consume.

FORMAL / INFORMAL PRODUCER CONSUMER

BUSINESS of Goods and Services of Goods and Services
1. Formal Trader Trade perishable and Telephone service,
e.g. non perishable food Internet service, Cash Registers,
SPAR
________________ (Goods) Shelving, Vehicle,
Estate Agent Service,
Banking, Insurance, Security

2. Formal
Service Provider
e. g
_______________

3. Formal
Manufacturer
e.g.
________________

4. Informal Trader
e.g
__________________

5. Informal Service
Provider
e.g.
___________________

6. Informal Manufacturer
e.g.
__________________

35
Topic: Informal traders

4:20

https://www.youtube.com/watch?v=8MduDxyUl2U

2:15

https://www.youtube.com/watch?v=XFK36SgHIpU

36
 The Effect of Natural Disasters and
Health epidemics on
formal and informal businesses
ASSIGNEMENT

ASSESSMENT : 4
TOTAL: 50 (40% of your term mark)

DUE DATE: _________________

1. Identify one example of a formal business and an example of an informal business
2. Discuss 3 negative effects a health epidemic e.g. HIV and AIDS can have on both the
businesses.
Explore possible solutions/ preparations/ preventative measures for each effect.
3. Discuss 5 negative effects a natural disaster e.g. drought or floods, can have on both
the businesses.
Explore possible solutions/ preparations/ preventative measures for each effect.
4. Present your assignment on an A3 poster board. Include pictures where possible.

0 1-6 7 - 10

The learner could not The learner correctly The learner correctly
identify an example of identified examples of one of identified examples
a formal or informal the two businesses of both an informal
_____ _____ and formal business _____
business

The learner did not discuss The learner discussed 1 - 2 All requirements of
any effects of a health effects the Assignment were
epidemic on either business of a health epidemic on met
both businesses
_____ _____ _____

The learner did not The learner explored 1 - 2 All requirements of

explore possible solutions/ Possible solutions/ the Assignment were
preparations/ preventative preparations/ Preventative met
measures of a health measures on both
epidemic on either businesses
business _____ _____ _____

The learner did not The learner discussed 1 – All requirements of

discuss the effects of a 2 possible effects of a the Assignment were
natural disaster on either natural disaster on both met
business businesses
_____ _____ _____

The learner did not The learner explored 1 - All requirements of

explore possible solutions/ 2 Possible solutions/ the Assignment were
preparations/ preventative preparations/ met
measures of a natural Preventative measures
disaster
_____ _____ _____

37 ______/ 50
Topic: Impact of Aids on the workforce and productivity

17:02 https://www.youtube.com/watch?v=RfOMxLSqfr4

Topic: Natural Disasters

2:20

https://www.youtube.com/watch?v=Q3shTaz1TTs

3:16 https://www.youtube.com/watch?v=J5WMyD9-CHs

2:26 https://www.youtube.com/watch?v=9QXDNaXPnh4

Website
http://www.ndmc.gov.za/Pages/Home-Page.aspx

38
 ASSETS

Assets are items of economic value. Assets are owned by an individual or business.
Assets can be divided into three groups:

 Possessions (These are not consumables which get “used up” and need replacing)
 Cash
 Debtors

1. ASSETS - POSSESSIONS
In financial terms, possessions are assets. When you possess something it means you
own it. Assets have value and are used for a long period of time. In order for an item to be
classified as an asset, one has to answer “yes” to all three of the following questions.
Is the item tangible Does the item Is the item
– can I touch it? have usually in
monetary use for a
value? period of no
less than a
year? (Not consumable)
ACTIVITY 1

Analyse the following items to determine whether they are assets or not. Highlight the item that is not an asset.

Is the item usually

Item Is the item tangible Does the item have in use for a period
– can I touch it? monetary value? of no less than a
year?
e.g.
Cell phone

Live Stock

x x
Stationery
Broom
(Equipment)

Gold Coin

Pot (Equipment)

39
 2. ASSETS - CASH

2.1. Cash is money i.e. coins and notes. When deciding on a place to
keep/store money, the following criteria must be taken into account:
 Safety – Can it be lost, destroyed or stolen?
 Record keeping – is there evidence/proof (documents) that the
money exists and how it is being saved or spent?
 Interest – does the money earn interest (Grow)?
ACTIVITY 2
(Highlight the most beneficial place to keep/store money) Indicate ,
or for each place where the cash is stored.
Place Safety Record keeping Interest bearing

e.g.

Shoe box

Tumble dryer

Fridge

Savings Account

Home Safe

Clothing

Wallet

Under mattress

Bottle
40
 2.2 ASSETS - CASH IN THE BUSINESS

2.2.1 ASSET - BANK:The owner/s of an

enterprise lend money to the business.
This money is used to start a business
and is called capital. The capital is
deposited into the business BANK
account. Money is deposited and
withdrawn from the business BANK
account on a daily basis.

Please note! Capital is not classified as an income for the business.

Assets that are purchased with the capital amount are called capital goods e.g.
Furniture, land and buildings, equipment, machinery, shelving and trucks.

2.2.2 ASSET - CASH FLOAT: Everyday the cash register is started with a certain amount
of money so that the teller can issue change if a customer needs it. This is called cash float

2.2.3 ASSET - PETTY CASH: The Petty Cash box is where money is kept for small (petty)
expenses of a business e.g. stamps and envelopes. A petty cash voucher has to be filled in
and put into the box every time money is used from petty cash. See the
voucher in the example

A cash register
Petty Cash

Cash Float
Petty Cash Box

3. ASSETS - DEBTORS

If someone owes you money, he/she is your debtor. Your debtor is DEBTOR
classified as an asset. This money is owed to you and will be paid ASSETS (OWN)
back on agreed terms and conditions.

3.1 Does anyone owe you money? ___________

Who and how much? ______________________
Are you charging him/her interest and how much? ____________
What is the total owed to you R ___________

3.2 Similarly, when a business sells goods e.g. clothing or a service e.g. garden service but
does not get payment immediately, the business is owed money i.e. there is a delay in
payment. Whoever owes the business money is a Debtor. The debtor is an asset

41
 LIABILITIES

1. LIABILITIES - CREDITORS

The dictionary meaning for the word “liable” is legally responsible. Financially speaking, if
you owe anyone money, you are legally responsible to pay the person back. The money you
owe is a liability. The person we owe money to is a Creditor.
1.1 Do you owe anyone money? How much are you liable for? _________________ Who is
your creditor? _______________________ Do you have to pay interest and how much?
________ Total owed by you R ______________

1.2 Similarly, when a business buys goods e.g.stock to trade with or makes use of a service
e.g. telkom but does not make payment immediately, the business owes money because
there is a delay in payment. Whoever the business owes money to is called a Creditor.
The creditor is a liability.

CREDITOR
LIABILITY (OWE)

SUMMARY (Complete the grid)

a) A business The business is who is now an asset

sells
__ ______on credit. owed money by the debtor (OWN)

b) A business buys on The business to the who is now a

credit. owes money Creditor
____ __________ Liability
_________ ________
(OWE)

Activity 2

Describe three ways in which you can acquire liabilities?

1) Secure a loan
2) Use a credit card
3) Buy furniture on
credit

42
ACTIVITY 3

(Analyse the advertisement and complete the following grid)

R211 x 36 months Credit price R8 316*

8
R344 x 36 months Credit price R12 348*

R133 x 36 months Credit price R4 788*

R268 x 36 months Credit price R9 648*

*Credit price includes interest and finance charges

TERMS: CREDIT SAVINGS IF

ITEM CASH PRICE R ______ YEARS _____ PRICE * BOUGHT CASH

TV and stand R 3 999, 00 R 211 3 years R 7 596, 00 R 3 597, 00

Lounge suite R 6 999, 00 R 344 3 years R 12 384, 00 R 5 385, 00

Tumble dryer R 1 999, 00 R 133 3 years R 4 788, 00 R 2 789, 00

Bed R 4 999, 00 R 268 3 years R 9 648, 00 R 4 649, 00

3.1 What do you conclude/understand by your findings?

It costs more to buy goods on credit

_________________________________________________________________________
_________________________________________________________________________

3.2 If you bought any of the items on credit, who would your creditor be? _______________

3.3 How can you otherwise purchase the above assets without having to pay all the interest?
Save and buy cash
_________________________________________________________________________
43
 PERSONAL INCOME AND EXPENSES

1.1 PERSONAL INCOME – MONEY COMING IN (PERSONAL BANK ACCOUNT)

As the term suggests, income is money coming in. Money coming into your
household is used to pay for all you needs and wants. There are many sources of
income. Examples include salaries (paid monthly), wages (paid weekly), gifts,
winnings, maintenance, social grants, pension, stokvel pay out, shares on
investments, UIF etc.
A Loan is not an income but a liability

A Stokvel ( See page 107 for website and TouTube

links explaining Stokvels)

Stokvels or savings clubs are a good way for people

to help motivate each other to save. Regular stokvel
meetings have become a social highlight in many
communities and members help and support one
another.
A basic stokvel is simple to undertake.

 There are usually twelve or more members (One for each month of the year), and
each member contributes a certain amount of cash each month. This can be
anything from R50 to R1, 000, depending on everyone’s income.
 Each month, it is a different member’s turn to receive the money. So, if you belong to
a stokvel with twelve members who each contribute R500 a month, then once a year
you will receive a R 6 000 payout. (Income)
 You are motivated to save because the other members will know if you haven’t paid
your contribution, and also because the regular meetings are a reminder of what you
will gain when it is your turn.

ACTIVITY 4 (Payslip)

1.1 What form of income is this?

Wages
________________
1.2 How do you know?
Indicated on the pay slip
____________________________________
____________________________________
1.3 What does the employee do?
House cleaning and taking care of sick,
____________________________________
____________________________________
elderly, disabled or child-minding
1.4 What is the total number of hours
Sarah worked?
48 + 7 = 55
____________________________________
1.5 What percentage more was she paid
for overtime?
100%
____________________________________
1.6 If her UIF (Unemployment Insurance
Fund) contribution at 1% is calculated once a
month, what will her contribution be if she
works the same amount of hours and
overtime for four weeks?
Show your calculation
R 982 x 4 weeks = R 3 928
1% of R 3 928 = R39, 28

44
 1.2 PERSONAL EXPENSES – MONEY GOING OUT (PERSONAL BANK ACCOUNT)
These include the household bills (expenses) we have to pay in order to live from day
to day and from month to month e.g. groceries, telephone, water and electricity, fuel,
entertainment, education, insurance, TV licence, medical etc.

Payments made on/for assets and liabilities are not classified as

expenses

ACTIVITY 5

Make a list of possible sources of income (3) and expenses (10) of households A and
B
INCOME EXPENSES

State Pension Electricity

Social Grant Rent
Wages Food
Stokvel Cell phone
Family etc. Clothes
School fees
Transport etc.

B EXPENSES
INCOME

Fuel
Salaries
Cell phones
Profits
Internet
Investments
Entretainment
Commission
School fees
Pension etc.
Clothing
Pet grooming
Medical aid
Insurance
Repairs
Domestic Wages/salaries
Water and Electricity etc.
2.1 Which household has more disposable income and how do you know?
B - More avenues for income/ Higher income
_________________________________________________________________________

45
 PERSONAL INCOME AND EXPENDITURE - SURPLUS AND DEFICIT

A hot air balloon works on a very simple scientific principle. – Hot air rises. So in order to
keep the hot air balloon in the air, heat is needed to warm up the air inside the balloon. If the
heat supply is cut off, the warm air cools down and the balloon would fall.

Similarly, that is the effect that income (hot air) and expenses (cold air) have on our
finances.

Income increases our financial standing, whilst expenses decrease it. The aim is to
balance the two so we at least keep our balloon from crashing! In other words, our income
must always be more or at least equal to our expenses.

Formula for calculating personal surplus/deficit:

INCOME – EXPENSES = SURPLUS/DEFICIT

Higher income than expenses = surplus (Rands and cents) - financially stable.
Higher expenses than income = deficit (Rands and cents) - financially unstable.

ACTIVITY 6

Calculate the surplus/deficit. Show a deficit amount by placing it within brackets e.g. (R 100)

TOTAL INCOME TOTAL SURPLUS/DEFICIT

EXPENSES
a. .e.g. R 12 000 R 13 400 (R 1 400)
b. R 120 000 R111 000 R 9 000
c. R 2 400 R 800 R 1 600
d. R 65 000 R 67 344 (R 2 344)
e. R 753 000 R 1000 000 (R 247 000)
f. R 345 345 R 238 000 R 107 345
g. R 61 001 R 24 034 R 36 967
h. R 899 000 R 455 000 R 444 000
i. R 45 500 R 21 800 R 23 700
j. R 78 003 R108 010 ( R 30 007)

Payments made for assets (including savings) and liabilities are not classified
as expenses

46
ACTIVITY 7

Tabulate the following income and expenses of the Sibande household and calculate
whether they have a surplus or deficit at the end of the month of August 2018

Salary Mrs Sibande R 2 500, Salary Mr Sibande R 6 500, rent R 1200, cell phones R 300,
school fees R 450, water and electricity R 250, transport (Taxi) R 1 200, groceries R1 500,
household insurance R 200, clothing R 300, entertainment R 300.

INCOME AND EXPENDITURE OF _______________________ FOR AUGUST 2018

INCOME EXPENSES
DETAILS AMOUNT DETAILS AMOUNT
e.g. Salary – Mrs Sibande 2 500, 00 Rent R 1200, 00
Mr Sibande 7 500, 00 Cellphones R 300, 00
School Fees R 450, 00
Water and Electricity R 250, 00
Transport R 1 200, 00
Groceries R 1 500, 00
Insurance R 200, 00
Clothing R 300, 00
Entertainment R 300, 00

R 9 000 R 5 700
Surplus/deficit R ___________________
3 300, 00 surplus
ACTIVITY 8

Tabulate the following income and expenses of the Meyer household and calculate whether they
have a surplus or deficit at the end of the month of November 2018

Salary Mrs Meyer R 2 500, Salary Mr Meyer R 7 500, cell phones R 700, school fees R 1 450,
water and electricity R 750, Fuel R 2 000, groceries R 2 500, clothing R 500,
entertainment R800, DSTV R 475, security R 350, car insurance R 400,
household insurance R 300

INCOME AND EXPENDITURE OF _______________________ FOR AUGUST 2018

INCOME EXPENSES
DETAILS AMOUNT DETAILS AMOUNT
Salary - Mr Meyer 7 500, 00 Cell phones 700, 00
Salary - Mrs Meyer 2 500, 00 School Fees 1 450, 00
Water and Electricity 750, 00
Fuel 2 000, 00
Groceries 2 500, 00
Clothing 500, 00
Entertainment 800, 00
DSTV 475, 00
Security 350,00
Vehicle Insurance 400, 00
Household Insurance 350, 00
R10 000 R10 225, 00
225, 00 Deficit
Surplus/deficit R ___________________

47
 BUSINESS INCOME AND EXPENSES – PROFIT AND LOSS

The aim of owning a business is to make a profit. The difference between the businesses
income and expenses will determine whether the business has made a profit or a loss.

1.1 BUSINESS INCOME – MONEY COMING IN (BUSINESS BANK ACCOUNT)

Businesses generate an income in the following ways:
 Sales (Buying and selling of goods – Trading e.g. Pick N Pay)
 Current Income (Selling a service – Services rendered e.g. Hair dresser)
 Rent income (a business may rent out a part of the building) etc.
ACTIVITY 9
Analyse the advertisements and complete the table showing the income of the
businesses:

1 3

Activity 1

48
 BUSINESS INCOME
Trades Specific Product Type of income -
Business Name or or Sales or
Renders a service Service Current Income
1. Absolute Fun Renders a service Jumping castle hire Sales and
Jumping Castle Hire Sell Party Packs and cakes
and trades Current Income
2.
Jukebox Hire Renders Service Jukebox Current Income
3.
Delta Forklift Tyres Trades Forklift Tyres Sales
4.
Supreme Renders Service Dry cleaning Current Income
5.
SC Supercare Renders Service Outsource Labour Current Income
6.
Pets Paradise Renders Service Pet Grooming Current Income
7.
Dynamic Label Co. Trades Labels Sales
8.
Sun Moon Star Trade Corporate Clothing Sales

1.2 BUSINESS EXPENSES- MONEY GOING OUT (BUSINESS BANK ACCOUNT)

To make money a business has to spend money. The day to day running of a business
costs money. These costs are called expenses e.g. Telephone, fuel, salaries (Paid
monthly), wages (paid weekly), stationery, insurance, water and electricity.

If the income is higher than the expenses it will show a profit but if the expenses are
higher than the income then the business has run at a loss Formula for working out
profit/Loss:

INCOME – EXPENSES = PROFIT/LOSS

ACTIVITY 10
Complete the following table. (A loss will be indicated by the amount being placed within
brackets).

TOTAL INCOME TOTAL EXPENSES PROFIT/LOSS

a. R 12 000 R 7 500 R 4 500
b. R 160 500 R 135 000 R 25 500
c. R 995 000 R 1 011 555,00 (R 16 555)
d. R 235 700 R 370 750, 00 (R 135 050)
e. R 6 800, 00 R 24 000 (R 17 200)
f. R 675 870 R 450 400 R 225 470, 00
g. R 45 678 R 53 095 (R 7 417, 00)
h. R 6 650 R 3 868, 00 R 2 782
i. R 1 230, 00 R 865 000 R 365 000
j. R 78 000 R 90 000, 00 (R 12 000)

49
ACTIVITY 11

Tabulate the following income and expenses and calculate whether

“Claire’s Cards” has made a profit or a loss for June 2018.

Water and electricity R 200, wages R 500, rent expense R 700,

Telephone R 300, fuel R 300, rent income R 1 500, salaries R 2 000,
insurance R 300, sales R 12 000, stationery R 250, materials R 140,
packaging R25

CLAIRE'S CARDS
INCOME AND EXPENDITURE OF _________________________ FOR JUNE 2011

INCOME EXPENSES
DETAILS AMOUNT DETAILS AMOUNT
Sales 12 000, 00 e.g. salaries 2 000, 00
Rent Income 1 500, 00 Water and Lights 200, 00
Wages 500, 00
Rent Expense 700, 00
Telephone 300, 00
Fuel 300, 00
Insurance 300, 00
Stationery 250, 00
Materials 140, 00
Packaging 25, 00

R13 500, 00 R 4 715, 00

The business made a profit/loss of R 8 785, 00 profit

ACTIVITY 12

Tabulate the following income and expenses and calculate whether

“DJ Wade” has made a profit or a loss for December 2018
Internet R 350, wages R 700, telephone R 200, fuel R 270, salaries
R 2 050, insurance R 399, services rendered R 22 000, stationery R 350, repairs and
maintenance R 355, advertising R 325, DJ licence R 240, 00

INCOME AND EXPENDITURE OF _________________________ FOR DECEMBER 2018

INCOME EXPENSES
DETAILS AMOUNT DETAILS AMOUNT
Current Income 22 000, 00 Internet 350, 00
Wages 700, 00
Telephone 200, 00
Fuel 270, 00
Salaries 2 050, 00
Insurance 399, 00
Stationery 350, 00
Repairs and Maintenance 335, 00
Advertising 325, 00
Licence 240, 00
R 22, 000 R 5 239, 00

16 761, 00 Profit
The business made a profit/loss of R _______________

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 ACTIVITY 13

1. Categorise the following accounts of a BUSINESS. Show with an x

ACCOUNT ASSET INCOME EXPENSES LIABILITIES

e.g. Land and x
Buildings
Telephone bill x
Equipment x
Vehicles x
Salaries x
Loans x
Advertising x
Petty Cash x
Rent expense x
Creditors x
Bank x
Current income x
Rent Income x
Tyres to sell
(Trading
x
Inventory)
Insurance x
Sales x
Debtors x
Licences x
Donations (paid) x
Electricity x
Fines x
Fuel x
Wages x
Stationery x
Repairs and
maintenance x
Packaging x
Security x
Cash Float x
ACTIVITY 14

2.1 Refer to the flashcards on the next page.

2.2 Colour the assets, income, expenses and liabilities with the colours
indicated
2.3 Cut out the flashcards and arrange them in the spaces provided

COLOUR

ASSET BLUE

INCOME GREEN

EXPENSE RED

LIABILITY YELLOW

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